IHG dropped more hotels than it opened in the first quarter

May 9, 2021

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

IHG is serious about closing hotels that don’t fit its brand standards.

In its first-quarter earnings report, the major hotel chain announced that it removed roughly 9,500 hotel rooms from its management, representing a total of nearly 61 hotels.

Half of the closures — 31 hotels — were at Holiday Inn or Crowne Plaza properties in the Americas and Europe, the Middle East and Africa.

For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.

In total, the Denham, U.K.-based chain closed more hotels than it opened in the first quarter. IHG welcomed 56 hotels with a total of 7,300 rooms to its portfolio from January to March of this year.

Paul Edgecliffe-Johnson, chief financial officer and group head of strategy for IHG, cited the chain’s “focus on quality and consistency” as the reason for these removals. IHG didn’t list the individual hotels that were booted from the chain in its financial disclosures.

(Photo courtesy of the Crowne Plaza London – Kings Cross)

Later in the call, Edgecliffe-Johnson expounded on the removals, noting that “this is the right time for us to have the conversations with the owners. Guest expectations have changed. And so while over some years, we have been working with the owners to take out the hotels in the system that haven’t met our vision for the brand as they move forward and not fulfilling on guest expectations, we’re having to have conversations with owners around the future of their properties with us.”

Related: How to pick the right hotel chain for you

Hotel chains have standards for individual brands that must be followed by ownership — or risk getting booted from management. By eliminating the bad apples, IHG is working towards elevating the perception of its individual brands, like Holiday Inn and Crowne Plaza.

Featured photo courtesy of IHG

Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles after you spend $3,000 in purchases within the first three months of card membership. Plus, earn a $200 statement credit after your first Delta purchase within the first three months. Offer ends 7/28/21.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 Bonus Miles after spending $3,000 in purchases on your new Card in your first 3 months and a $200 statement credit after you make a Delta purchase with your new Card within your first 3 months. Offer expires 7/28/2021.
  • Limited Time Offer: Plus, get a 0% intro APR on purchases for 12 months from the date of account opening , then a variable 15.74%-24.74%. Offer expires 7/28/2021.
  • Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA Pre✓®.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Intro APR on Purchases
0% on purchases for 12 months
Regular APR
15.74%-24.74% Variable
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.